CR 2013/99-103 – Return of capital; early retirement schemes; new head company [35]

The ATO on Wed 18.12.2013, released the following Class Rulings: CR 2013/99: Village Roadshow Limited – return of capital. It applies from 1 July 2013 to 30 June 2014. The Ruling broadly states that the return of capital to shareholders is not a dividend as defined in s 6(1) of the ITAA 1936. CR 2013/100: University of Tasmania 2014 early retirement…

CR 2013/95-96 – Disposal of shares; early retirement scheme [33]

The ATO on Wed 4.12.2013, issued the following Class Rulings: CR 2013/95: The Trust Company Limited Scheme of Arrangement and Special Dividend. It applies from 7 May 2013 to 30 June 2014. The Ruling broadly states that CGT event A1 happens as a result of the disposal of shares by shareholders, however, eligible shareholders may choose a partial scrip-for-scrip rollover. CR…

TD 2013/D10 – Franking credits arise in franking account of the head company when a non-member entity makes a distribution to a subsidiary trust member [31]

This Draft TD, issued on Wed 11.12.2013, states that a franking credit arises in the franking account of a head company of a consolidated group when a franked distribution is made by an entity that is not a member of a consolidated group to a trust that is a subsidiary member of the consolidated group.…

*TR 2013/D8 – A deemed permanent establishment does not mean that the taxpayer is automatically carrying on a business through the P/E [29]

This Draft Taxation Ruling, issued on Wed 11.12.2013, considers the requirement in s23AH of the ITAA 1936 where a company is taken to have a permanent establishment (PE) in relation to substantial equipment under both s6(1)(b) of the ITAA 1936 and under Australia’s tax treaties. Broadly, the Draft states that where the company is taken…

*PTTEP Australasia (Ashmore Cartier) Pty Ltd v FCT – taxpayer appeals Federal Court decision that the Petroleum Rent Resource’s Tax consideration is the contract amount [27]

The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision of Gordon J in PTTEP Australasia (Ashmore Cartier) Pty Ltd v FCT [2013] FCA 1175. In that case, the Federal Court determined the taxing point and consideration receivable by a taxpayer in relation to revenue it received from the sale…